Abby Kratz,a market specialist at the market research firm of Saez,Sikes,and Spitz,is analyzing household budget data collected by her firm. Abby's dependent variable is weekly household expenditures on groceries (in $'s),and her independent variables are annual household income (in $1,000's)and household neighborhood (0 = suburban,1 = rural). Regression analysis of the data yielded the following table. Abby's model is ________________.

Question

Abby Kratz,a market specialist at the market research firm of Saez,Sikes,and Spitz,is analyzing household budget data collected by her firm. Abby's dependent variable is weekly household expenditures on groceries (in $'s),and her independent variables are annual household income (in $1,000's)and household neighborhood (0 = suburban,1 = rural). Regression analysis of the data yielded the following table.  Abby's model is ________________.

Quizplus · Accepted Answer

The regression equation is of the form y = b0 + b1 x1 + b2 x2. Using the table provided, we get: b0 = 19.68247 b1 = 1.735272 (since ₁ represents suburban neighborhoods, which are coded as 0 in the regression output) b2 = 49.12456 (since ₂ represents rural neighborhoods, which are coded as 1 in the regression output) Therefore, the regression equation is: y = 19.68247 + 1.735272 x₁ + 49.12456 x₂. This is the same as choice E.

Abby Kratz,a Market Specialist at the Market Research Firm of Saez,Sikes,and